A current liability is a debt that can reasonably be expected to be paid

An ongoing obligation is a financial obligation that will fairly be likely to
be compensated an inside twelve months or even the running period, whichever is
much longer. b between six months and 1 . 5 years. c from at this time acknowledged incomes. d from money at this time readily available.
Believe a 360-day 12 months for determining interest. The attention
recharged on a $200,000 note payable, in the price of 8percent, on a 90-day
note will be a. $16,000. b $8,888. c $4,000. d $1,333. On September 1, Joe’s Painting provider borrows $100,000 from
Nationwide Bank on a 4-month, $100,000, 6percent note. Exactly what entry must
Joe’s Painting provider make on December 31 before monetary
statements have decided? a Interest Payable
…………………………………………………………….
2,000

Interest Expenditure
……………………………………………………

2,000 b Interest Expenditure
……………………………………………………………
6,000

Interest Payable
…………………………………………………….

6,000 c Interest Expenditure
……………………………………………………………
2,000

Interest Payable
…………………………………………………….

2,000 d Interest Expenditure
……………………………………………………………
2,000

Records
Payable……………………………………………………….

2,000 Crawford business features complete profits (before segregation of product sales
fees) from product sales of $4,770. If product sales taxation is 6percent, extent to
be paid to your account product sales income is: a. $4,770. b $4,484. c $5,056. d $4,500.
Product sales fees gathered because of the merchant tend to be taped as a(letter) an income. b obligation. c expenditure. d asset.

Answer) option a
within one
12 months or even the running period ,whichever is
longer
answer) option c
—-$4,000
200,000*8percent*90/360
4000
Answer) option c
100,000*6percent*4/12
2000
interest
expense
2,000
interest
payable
2,000
answer) option d
$4,500
4770/1.06
4500
answer) option b
liability

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